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MARK 1012: MARKETING FUNDAMENTALS TUTORIAL 1: Week 2

In this tutorial, we have two questions to discuss. Question 1 Refer to Some Definitions of Marketing presented on pp. 2-3 of this document. Why there are so many definitions of marketing?

Marketing communication tasks have developed as marketings influence extended into different business sectors. Since the number of business companies highly increases due to steady world economic growth, marketing spread rapidly in many businesses such as consumer packaged goods companies, consumer durables companies and industrial equipment companies. The most recent official definition marketing states, Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. And one of the main reasons how this definition is created is based on the Internet has brought us new terminology, new techniques, and new twists. People live in the information age where convergence in telecommunications, media and technology, is causing old ways to be challenged. Marketing organizations also want to develop and maintain relationships with their customers, and go out of their way to differentiate their offerings to these customers, who in turn provide differing value to the marketing organization. Although steady and several changes in our society have also opened opportunities for misguided notions about the definition of marketing, the single definition of marketing should not be driven since it might limit the future development of marketing as an academic discipline.

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Question 2 Consider the three products (a) Carnation Instant Breakfast, (b) Adidas running shoes and (c) Hertz Rent-A-Car. What consumer wants (or benefits) are met by each of these?

For carnation instant breakfast, Customers want to - prepare breakfast quickly. - save their money since instant food is usually relatively cheap. Adidas Running shoes Customers are likely to find shoes with - Satisfactory wearing awareness - good-looking shoe design - its strong durability. With Hertz Rent-A-Car, the customer can consider - Comfort - Air conditioning system - Safety - Engine Power - Durability - Fuel efficiency Each of the three products or services listed above has substitutes: substitute for (a), (b) and (c) are a ham and egg breakfast, regular tennis shoes and taking a bus, respectively. What consumer benefits might these substitutes have in each case that some consumers might value more highly than those products mentioned in question 1? Customer can consider to intake better quality of ingredients with a ham and egg breakfast since
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Ham and egg breakfast is composed with more natural and healthier ingredients such as protein than instant breakfast.

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Customer can prefer to have tennis shoes rather than to have adidas running shoes - They feel lighter while they have a walk since the weight of tennis shoes is usually lighter than that of running shoes.

Taking bus is more favourable option than having a car for customers - since they do not have to spend more cash to purchase fuels for car.

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Some Definitions of Marketing


Definitions by Individual scholars/researchers/practitioners
1. Marketing is creation and delivery of a standard of living. Malcolm P. McNair Marketing consists of all activities designed to generate and facilitate any exchange intended to satisfy human needs and wants. Philip Kotler (1972)

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Marketing may be defined as individual and organizational activities that facilitate and expedite satisfying exchange relationships in a dynamic environment through the creation, distribution, promotion and pricing of goods, services and ideas. Sally Dibb, Lyndon Simkin, William M Pride and O. C. Ferrel (1991), Marketing, Boston, Mass, Houghton Mifflin 4. Marketing is the process by which the demand structure for products and services is anticipated or enlarged and satisfied through the conception, promotion, distribution, and exchange of such goods. James Carman (1973), On the universality of marketing, Journal of Contemporary Business,, Vol. 2, No. 4, pp. 79-89. A social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. Philip Kotler (1994), Marketing Management: Analysis, planning, implementation and control, 8th edition, Englewood Cliffs, NJ: Prentice Hall.

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Definitions by Association/Region etc.


6. Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives.

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American Marketing Association 1985 7. Marketing is the management process which identifies, anticipates, and supplies customer requirements efficiently and profitably. Chartered Institute of Marketing Marketing is to establish, develop and commercialize long-term customer relationships, so that the objectives of the parties involved are met. This is done by mutual exchange and keeping promises. Christian Gronroos (1987), Defining marketing: a market oriented approach, Working Paper 170, Swedish School of Economics, Helsinki, December, p. 5.
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Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. American Marketing Association 2007

# 9 is the most recent official definition of marketing.

Definitions by level: Micro and Macro [of the individual company]


Micro definition 10. A total system of business activities which directs the flow of goods and services from the producer to consumer or users in order to satisfy customers and accomplish company objectives. Richard Sandhusen Marketing is a total system of business activities designed to plan, price, promote and distribute want satisfying products, services and ideas to target markets in order to achieve organizational objectives. Etzel, Walker and Stanton

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Macro definition
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12.

The design of fair and efficient systems to direct an economys flow of goods and services from producers to consumers or users in order to satisfy customers and accomplish the objectives of the society.

Richard Sandhusen

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